Free PF Calculator
Enter your basic salary + DA and age to calculate your PF contribution and maturity value.
* EPS contribution is capped at 8.33% of ₹15,000 (₹1,250/month) regardless of actual basic salary, per EPFO rules. Assumes 8.25% annual interest, compounded annually. Actual returns may vary based on EPFO's declared rate each year.
What Is EPF (Employee Provident Fund)?
The Employee Provident Fund (EPF) is a mandatory retirement savings scheme in India, managed by the Employees' Provident Fund Organisation (EPFO). Both the employee and employer contribute a fixed percentage of the employee's basic salary + dearness allowance (DA) every month, which accumulates with interest and is paid out at retirement, resignation, or in specific withdrawal situations.
PF Contribution Formula
Employer PF = 12% × Basic Salary (split between EPF and EPS)
Both employee and employer contribute exactly 12% of basic salary + DA. The employee's full 12% goes into the EPF account. The employer's 12%, however, is split — most of it goes to the Employee Pension Scheme (EPS), not the EPF account directly.
Where Does the Employer's 12% Go? EPS vs EPF
| Component | Rate | Destination | Notes |
|---|---|---|---|
| Employee contribution | 12% of Basic | 100% to EPF | Fully accumulates in your EPF account |
| Employer — EPS share | 8.33% of Basic | Employee Pension Scheme | Capped at 8.33% of ₹15,000 = ₹1,250/month max |
| Employer — EPF share | 3.67% of Basic (balance) | EPF account | Remainder after EPS cap is deducted |
For basic salaries above ₹15,000, the EPS portion stays capped at ₹1,250/month, so a larger share of the employer's 12% flows into the EPF account instead — this is why the effective employer-to-EPF percentage rises for higher earners.
Quick Reference: Monthly PF by Basic Salary
| Basic Salary | Employee PF (12%) | Employer → EPF | Employer → EPS (capped) | Total Monthly PF |
|---|---|---|---|---|
| ₹15,000 | ₹1,800 | ₹550 | ₹1,250 | ₹2,350 |
| ₹20,000 | ₹2,400 | ₹1,150 | ₹1,250 | ₹3,550 |
| ₹25,000 | ₹3,000 | ₹1,750 | ₹1,250 | ₹4,750 |
| ₹30,000 | ₹3,600 | ₹2,350 | ₹1,250 | ₹5,950 |
| ₹40,000 | ₹4,800 | ₹3,550 | ₹1,250 | ₹8,350 |
| ₹50,000 | ₹6,000 | ₹4,750 | ₹1,250 | ₹10,750 |
Total Monthly PF = Employee contribution + Employer → EPF share (excludes the EPS portion, which builds pension, not the withdrawable EPF corpus).
PF Withdrawal & Tax Rules
- Full withdrawal: Allowed after 2 months of unemployment, or at retirement (58 years)
- Partial withdrawal: Permitted for specific purposes — home purchase/construction, medical emergencies, education, marriage — after minimum service periods
- Tax-free withdrawal: EPF withdrawal is tax-free if you've completed 5+ years of continuous service
- TDS on early withdrawal: 10% TDS applies if withdrawing before 5 years of service and the amount exceeds ₹50,000 (if PAN is provided)
- UAN portability: Your Universal Account Number (UAN) stays the same across employers — always transfer your PF instead of withdrawing when switching jobs
Frequently Asked Questions
How is PF calculated on salary?
PF is calculated as 12% of your Basic Salary + Dearness Allowance (DA), contributed by both you and your employer. For a ₹25,000 basic salary, your PF contribution is ₹3,000/month, and your employer contributes another 12% (split between EPF and EPS).
What is the difference between PF and EPF?
PF (Provident Fund) is the general term; EPF (Employee Provident Fund) specifically refers to the scheme run by EPFO for organized-sector employees. In everyday use, "PF" and "EPF" refer to the same thing.
Is PF mandatory for all employees?
PF is mandatory for employees with a basic salary up to ₹15,000/month at companies with 20 or more employees. Employees earning above ₹15,000 can still be enrolled if the employer opts in voluntarily.
What is the current PF interest rate and how do I calculate interest?
The EPFO-declared interest rate for FY 2024–25 is 8.25% per annum, credited annually. This rate is reviewed and set by EPFO each year and can change.
Can I withdraw my full PF balance anytime?
Full withdrawal is allowed after 2 months of continuous unemployment or upon retirement at 58. Partial withdrawals are permitted earlier for specific purposes like home purchase, medical treatment, or education, subject to minimum service conditions.
Does the employer's full 12% go into my PF account?
No. Of the employer's 12% contribution, 8.33% of basic salary (capped at ₹1,250/month) goes to the Employee Pension Scheme (EPS), and only the remaining 3.67% (or more, for basic salaries above ₹15,000) goes into your withdrawable EPF account.
